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Personal Loans on Centrelink Benefits
November 27, 2015●
4 minute read●
Can you receive a personal loan on Centrelink benefits? When you’re living on a low income, and financial emergencies arise, it can be challenging to make ends meet. There are a number of fast cash loans available for those struggling with low credit ratings. Suppose you’re also receiving government income benefits this can make approval for these loans challenging. Even’ payday loans’ or short term personal loans may become more expensive or harder to access if you’re in these situations.
There are still options available to obtain affordable personal loans for Centrelink recipients. Protecting you and your family in times of unexpected financial stress may be one reason for such a loan. You might be eligible for loans directly from Centrelink. Otherwise, some reliable lenders can help you with short-term loans.
Unexpected expenses and personal loans for those on Centrelink benefits
Centrelink provides financial support to Australian citizens in need of a little extra help. This support is available to a broad range of people, including students and parents. Centrelink also supports those who are unemployed, disabled, retired, or on low incomes. They understand the pressures of surviving on a low income.
Centrelink are sometimes flexible enough to arrange different payment options or financial supplements to account for your circumstances. If you’ve found yourself in a situation where Centrelink’s financial support can’t cover your unexpected income deficit, though, what can you do?
Financial emergencies can happen to anyone. Centrelink customers are no different.
Accidents, illnesses, and expensive dental treatments are all part of life. As a result, many lenders understand that you should still be able to get help when you’re on a low or supplemented income. If your benefits can’t cover your emergency expenses a personal loan from a respectable lender could be the appropriate solution for you.
A responsible lender experienced in low income and bad credit will assess the reasons for your economic hardship. They will be able to advise on alternative loan options to cover your short-term financial expenses in a way that you can manage. Whether it’s to cover rent or utility bills, medical expenses, or a broken-down car, short-term personal loans can help you back on your feet.
It’s important to note, any advice given by a lender (including Jacaranda Finance) does not constitute legal financial advice. You should contact a professional financial advisor to assess your situation, if possible.
Rules for low-income personal loans on Centrelink benefits
The government has recently passed several reforms for short-term personal loans. These reforms benefit and protect many Australians battling their way through financial hardship. They introduce stricter regulation to prevent low-income customers from being driven into deeper debt. One of the reforms is also capping interest rates on personal loans.
Trustworthy lenders are typically more transparent with their fee schedules. We expect the same transparency from our loan applicants. Your income and financial situation will be thoroughly assessed. While a bad credit rating and status as a government beneficiary won’t disqualify you for a loan, your ability to repay said loan will determine whether your application is successful.
You’ll typically have to prove that you have run out of options to pay your debts in your financial emergency. This includes exhausting the opportunities available at Centrelink for help with utilities, rent, food, and extra benefits and bonuses for work, study and children.
Fees and terms for personal loans on Centrelink benefits
The reality is personal loans available to low-income and Centrelink customers can be expensive.
Are you in a situation where you’re prepared to pay a higher fee over the loan term to get past a financial hurdle? If so, a suitable lender will work with you to assess the fine print of their loan and fee schedules. They will discuss repayment options to reach a responsible solution. Because of the nature of the financial circumstances of Centrelink customers, personal lenders should be clear and upfront about the fees. They will make sure you understand your repayment responsibility and the cost involved in getting the loan before you sign on the dotted line.
Your lender will advise you on appropriate terms for your loan. This will allow you to repay the funds in a way and over a time that you will be able to manage. They are generally reasonable with their schedules.
Centrelink personal loan lenders
Government regulations have helped protect low-income and Centrelink customers from exploitation. However, not all lenders are equal. While personal loans on Centrelink benefits are a convenient option when you need cash fast, they’re a short-term solution to financial crises. For this reason, sound advice from experienced lenders is essential when seeking any loan.
are specialists when it comes to short-term personal loans for Centrelink recipients. We provide responsible financial solutions to Centrelink customers.
Contact us for help. We’ll thoroughly assess your situation to determine whether you’re in a position to receive and repay a personal loan on Centrelink benefits. We can help you retrieve your income statement. From there, we’ll discuss appropriate options with you to help you reach an informed decision about getting your finances under control.
For more information about the allowable charges for Small Amount Credit Contracts (SACCS) visit the MoneySmart website.
Written by Jacaranda Team